Ambitious businesses can reach a point where growth needs more capital than cash flow or conventional borrowing can support.
Equity finance raises money by issuing shares in the business. There are no scheduled loan repayments, but existing owners give up part of the company and investors may expect influence over important decisions.
TMS Finance can complete an initial commercial review of the funding requirement, investment case and supporting information. Where permitted and appropriate, we may introduce the opportunity to selected specialist providers. Investment is not guaranteed and independent legal and tax advice should be obtained before shares are issued.
Equity investment may support product development, market expansion, recruitment, acquisitions, technology and the working capital needed to deliver a credible growth plan.
This page is information only. It is not investment advice, an offer or an invitation to invest. Any introduction is subject to regulatory permissions, partner acceptance and investor due diligence.
Growth capital for businesses with a credible plan and a clear use of funds
Equity finance is usually considered when a business needs patient capital to pursue a substantial opportunity and investors can see how their capital could create long-term value.
Investment may support:
The right investor may contribute commercial experience, sector knowledge, strategic contacts and credibility as well as capital. The trade-off is ownership dilution. Investors may request voting rights, board representation, information rights, consent over important decisions and a defined route to exit. The headline valuation is only one part of the negotiation. Share rights, warranties, future funding obligations and control provisions can materially affect the founders. Independent legal and tax advice is essential before any investment is accepted.
Angel, venture capital and strategic investors can suit different stages of growth and different business objectives.
Angel investors use their own capital and may also contribute commercial experience, sector knowledge and useful contacts. They normally expect a credible growth plan, a realistic valuation and a clear route to a future return.
Professional funds usually invest in businesses capable of significant growth. They will examine the market opportunity, management team, evidence of demand, financial model, governance and likely exit route before committing capital.
A strategic or corporate investor may provide capital because the relationship also supports distribution, technology, supply, market access or a future acquisition. The commercial rights attached to the investment require careful review.
TMS Finance starts by reviewing the funding amount, use of funds, valuation expectations, management team, financial model and investor materials. We identify obvious gaps before the opportunity is shared. Where permitted and appropriate, we may introduce a suitable enquiry to selected specialist providers. We do not guarantee investment and we do not provide legal, tax or investment advice.
A structured route from initial review to investor due diligence.
1
Tell us how much capital is required, what it will fund, the current ownership structure, proposed valuation, trading history and target completion date. Provide the pitch deck, business plan and financial model if they are available.
2
We review the commercial case, investor materials, forecasts, management team and use of funds. We explain the gaps that are likely to prevent serious investor interest and whether another finance route may be more suitable.
3
Where permitted and appropriate, the opportunity may be introduced to selected specialist providers. Interested investors will carry out their own due diligence and negotiate valuation, share rights, governance and completion documents. Independent professional advice is essential.
Requirements vary, but a serious investor will usually expect:
Here are some of the main questions that we get asked.
Equity finance raises capital by issuing shares in the business. It does not create scheduled loan repayments, but existing owners give up part of the company and may share control with investors.
This depends on the amount raised, agreed valuation, investor rights and risk. A higher valuation reduces dilution for the same investment, but an unrealistic valuation can prevent a raise.
A prepared business may still need several months to identify suitable investors, answer questions, complete due diligence, negotiate terms and finish the legal documentation.
Not always. Investors may back a loss-making company where there is strong evidence of demand, credible unit economics, a capable team and a realistic route to scale and future value.
Eligible companies may be able to use the Seed Enterprise Investment Scheme (SEIS) or Enterprise Investment Scheme (EIS). The rules are detailed and tax relief is not guaranteed. Obtain specialist tax advice and consider seeking HMRC advance assurance.
Yes. A business may combine equity with business loans, asset finance or other facilities where the overall structure remains affordable and suitable. Each provider will assess the complete funding position.
No. Investors decide whether the opportunity fits their mandate and risk appetite. Strong preparation improves credibility but does not guarantee interest, terms or completion.
Tell us how much you want to raise, what the capital will achieve and what investor material is ready. We will review the commercial case and explain the most realistic next step.
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